Receiving a generous payout from a dividend stock reinforces for investors that they made a wise investment. Especially when the company that is providing the dividend has traits that lead to the likelihood that the payouts will continue. For our short list of dividend stocks today, we ran a scan to find mid to high yielders that have the dual assets of well-endowed cash reserves and significant growth projected for the next year. The ability to self fund if necessary is especially crucial for a company that is driving towards expansion. If dividend stocks with these traits appeal to you, then you enjoy reviewing the short list below.
The Current ratio is a liquidity ratio used to determine a company's financial health. The metric illustrates how easily a firm can pay back its short obligations all at once through current assets. A company that has a current ratio of one or less is generally a liquidity red flag. Now this doesn't mean the company will go bankrupt tomorrow, but it also doesn't bode well for the company, and may indicate that it could have an issue paying back upcoming obligations.
The Quick ratio measures a company's ability to use its cash or assets to extinguish its current liabilities immediately. Quick assets include assets that presumably can be converted to cash at close to their book values. A company with a Quick Ratio of less than 1 cannot currently pay back its current liabilities. The quick ratio is more conservative than the Current Ratio because it excludes inventory from current assets, since some companies have difficulty turning their inventory into cash. If short-term obligations need to be paid off immediately, sometimes the current ratio would overestimate a company's short-term financial strength. In general, the higher the ratio, the greater the company's liquidity (i.e., the better able to meet current obligations using liquid assets).
EPS growth (earnings per share growth) illustrates the growth of earnings per share over time. The 1-Year Expected EPS Growth Rate is an annual growth estimate, where the growth projections are made by analysts, the company or other credible sources.
We first looked for dividend stocks. Next, we then screened for businesses with a large amount of cash on hand (Current Ratio>2)(Quick Ratio>2). We then screened for businesses with projected high growth, measured by 1-year projected EPS growth above 25%. We did not screen out any market caps or sectors.
Do you think these stocks will go up in price? Use our screened list as a starting point for your own analysis.
1) Ennis Inc. (EBF)
|1-Year Projected Earnings Per Share Growth Rate||67.91%|
Ennis, Inc., together with its subsidiaries, engages in the print and manufacture of business forms and other business products. The company operates in two segments, Print and Apparel. The company, formerly known as Ennis Business Forms, Inc., was founded in 1909 and is headquartered in Midlothian, Texas.
2) Met-Pro Corp. (MPR)
|1-Year Projected Earnings Per Share Growth Rate||27.45%|
Met-Pro Corporation manufactures and sells product recovery and pollution control equipment for the purification of air and liquids, fluid handling equipment, and filtration and purification products. Met-Pro Corporation was founded in 1966 and is headquartered in Harleysville, Pennsylvania.
3) Hooker Furniture Corp. (HOFT)
|Industry||Home Furnishings & Fixtures|
|1-Year Projected Earnings Per Share Growth Rate||63.79%|
Hooker Furniture Corporation, a home furnishings marketing and logistics company, together with its subsidiaries, designs, develops, imports, manufactures, and markets residential wood, metal, and upholstered furniture products in North America. Hooker Furniture Corporation was founded in 1924 and is headquartered in Martinsville, Virginia.
4) National American University Holdings, Inc. (NAUH)
|Industry||Education & Training Services|
|1-Year Projected Earnings Per Share Growth Rate||55.17%|
National American University Holdings, Inc. engages in the ownership and operation of National American University that provides post-secondary education services primarily for working adults and other non-traditional students in the United States. The company offers associate, bachelor's, and master's degree programs in business-related disciplines, such as accounting, applied management, business administration, and information technology; and in healthcare-related disciplines, including nursing and healthcare management. The company was founded in 1941 and is headquartered in Rapid City, South Dakota.
*Company profiles were sourced from Google Finance and Yahoo Finance. Financial data was sourced from Finviz on 10/26/2012.